In 2008, it appeared that rising gas prices had made Californians fess resistant to offshore drilling. A
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An oil company has just announced that it has discovered new technology for detecting oil. The technology is 80% reliable. That is, if there is oil, the technology will signal “oil” 80% of the time. Let there also be a 1% chance that the technology erroneously detects oil, when in fact no oil exists.
In a report, use the above information to:
1. Prepare a table that shows the relevant probabilities.
2. Find the probability that, on a recent expedition, oil actually existed but the technology detected “no oil” in the area.
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Related Book For
Essentials Of Business Statistics Communicating With Numbers
ISBN: 9780078020544
1st Edition
Authors: Sanjiv Jaggia, Alison Kelly
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